Competitive bidding behavior in uniform-price auction markets

  • Peter Cramton
  • Published 2004 in
    37th Annual Hawaii International Conference on…

Abstract

Profit-maximizing bidding in uniform price auction markets involves bidding above marginal cost. It therefore is not surprising that such behavior is observed in electricity markets. This incentive to bid above marginal cost is not the result of coordinated action among the bidders. Rather, each bidder is independently selecting its bid to maximize profits… (More)
DOI: 10.1109/HICSS.2004.10020

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